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Freddie Mac Announces $548 Million Tax-Exempt Bond Securitization With Citi

Transaction Will Support More Than 8,800 Affordable Housing Units

McLean, VA – Freddie Mac and Municipal Mortgage Holdings, Inc., a subsidiary of Citigroup, Inc., announced that, with the collaboration of Citi Community Capital and Municipal Capital Markets, Citi closed its first Tax-Exempt Bonds Securitization (TEBS) with Freddie Mac. This is the second largest TEBS transaction in Freddie Mac history.

The collateral to be securitized consists of a pool of predominantly fixed-rate, tax-exempt and taxable multifamily housing revenue bonds and is comprised of 79 tax-exempt bonds and nine taxable "tail" bonds. The transaction is secured by 51 multifamily properties, all Low-Income Housing Tax Credit (LIHTC) properties. Citicorp Funding Inc. will act as Servicer and Capmark Finance Inc. as subservicer.

"This transaction demonstrates how Freddie Mac continues to provide much-needed liquidity to the multifamily mortgage market," said Mike May, Multifamily senior vice president at Freddie Mac. "When it comes to running our business, we are not missing a beat."

Hartley Hall, director of Citi Community Capital added, "The fact that we could close a $548 million transaction with Freddie Mac three days after the appointment of a Conservator is a testament to Freddie Mac's and the Conservator's commitment to remain active in the multi-family space despite these challenging times. It also demonstrates the depth of Citi's relationship with Freddie Mac and the quality, velocity and liquidity of the portfolio originated at Citi on behalf of its valued client."

Since the launch of the Freddie Mac's multifamily business in 1993, Freddie Mac has provided financing for approximately 55,500 multifamily properties totaling almost $200 billion.

Freddie Mac is a stockholder-owned corporation established by Congress in 1970 to provide liquidity, stability and affordability to the nation's residential mortgage markets. Freddie Mac raises capital on Wall Street and throughout the world's capital markets to finance mortgages for families across America. Over the years, Freddie Mac has made home possible for one in six homebuyers and more than five million renters.

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